Hi everyone! Looking for advice/obvious issues with the following. Apologies for the long post, but I'm really interested in your thoughts as I try to grow a few more whiskers. I bolded my primary questions to make things a bit easier.
A service called Getaround (basically an app for rental cars, except you rent from regular people rather than an agency like Hertz, etc. The car owner gets paid an hourly rate and Getaround takes a cut. Borrowers are insured for $1mm with 24/7 roadside assistance and pay for their own gas.) is offering the following: A 36-month Toyota PriusC lease for $0 down and $249/month with 15k miles/year. If you list the car with them for the first year and meet certain criteria (available 75% of all weekend days and priced "within 20% of their recommended rates" being the two keys ones), you are guaranteed to make a minimum of $6k revenue for the year (I live in one the of the prime zip codes that qualify for the best rebate).
Pros:*Wife and I have no vehicle currently. We have spent ~$1,000 this year on rental cars (Not a typo! Yikes. We enjoy Napa.), mostly for weekend trips, to visit friends we can't reach via mass transit, etc. Almost all of this (and some of our considerable uber expense) would go away.
*We're getting serious about having a child and a car would be helpful with many of the responsibilities that come with that.
*Small lifestyle improvements like not having to go pick up a rental car (3+ miles downtown, usually take my bike but it takes a half hour+), walking to/from the grocery store, etc.
*We won't drive to work (parking is $$$ downtown, the bus is fine), so we won't use many of the 15k miles and can lend the car out more.
Cons*The car won't always be available when we need it since we'll be lending it out for at least a portion of most weekends.
*Hassle of listing/inspecting/cleaning/maintaining/moving weekly to avoid towing. No idea how time consuming this will be.
*Risk that borrowers abuse the car and Getaround doesn't reimburse (or the hassle of getting them to do so).
Total 3Y Costs: $15,739 + Tax/Title/Registration/Lease Return Costs*Lease Payment: $8,964 ($249*36 months.
Are there taxes on this amount?)
*Getaround Connect: $800 ($20*35 months - first month free - plus $100 install)
*Insurance: $3,600 (assuming $100/month for full coverage)
*Parking: $375 ($111/year for a parking permit in my neighborhood. I assume some price inflation in Y2/Y3)
*Tax, Title, Registration(
Do you pay all of these on a lease? How much is it in CA? The DMV site is a nightmare. We both have CA driver's licenses already.)
*Gasoline: $1,000 (~15k miles / 50 mpg / $3 per gallon)
*Maintenance: $1,000 (
Is this reasonable? Assuming most is under warranty, but tires/brakes and other consumables likely need a replacement at some point over 3 years)
*Additional Costs on Lease Return: $0 (
Some risk that this becomes a material expense. Anyone have experience with returning a lease?)
Total 3Y Income: $17,400*Minimum Y1 Income: $6,000
*Y2/Y3 Income: $9,000. Welcome to assumption town. My early guess is we could lend it for a net of ~$7/hr (similar cars are $10-$12/hr, before Getarounds cut), and that people will put 15 miles per hour on the car on average. If we lend the car for 10k miles / year (leaving 5k for our occasional use), that's $4,666 per year in Y2 + Y3, rounded down to $4,500.
*Savings from not renting cars / fewer Ubers: $2,400 ($800/yr)
Net cost for a car, in San Francisco, for 3 years: -$1,660 + Tax/Title/Registration.Am I crazy? What am I missing? Would you do it?Here's two links with more details:
https://www.getaround.com/toyotahttps://help.getaround.com/hc/en-us/articles/204371664-Guaranteed-earnings-and-30-day-free-trial